Family Funds 101: Preparing for Your Future

Not everyone has a head for money matters, but if you are planning to raise a family or if you already have children, then making sure that you have the wherewithal to deal with your financial needs, whether expected or unexpected, is of utmost importance.

One way of ensuring your family’s financial stability is by investing in these four important funds:

1. Health InsuranceIf you have a modicum of good sense, you would readily appreciate why having health insurance coverage for your family is a must. In your past 20 or so years as a single individual, if you were ever hospitalized, you would know how hospital bills can easily spiral out of control. Thankfully, the health insurance your parents obtained for you or perhaps your workplace’s Health Maintenance Organization (HMO) probably covers much of these bills.

“Having medical coverage will already save [couples] a lot of money along the way, especially when medical emergencies happen or an illness comes to the family,” says Fitz Villafuerte, author of the financial blog Ready to Be Rich.

As a matter of fact, medical emergencies are among the primary reasons why people become bankrupt. You need only use your imagination to understand how this could happen. For instance, you get caught off guard by a serious illness or injury. Without health insurance coverage, you can still get medical help, but you will have to pay for all the costs on your own. Lucky you if you get better within a couple of days, but if you were to stay in the hospital for a fortnight, your bills can pile up easily.

Another reason why you should get a good health insurance is that insured people are more likely to seek medical help compared to their uninsured counterparts. The medical costs involved tend to discourage those uninsured from seeing their doctor when they are feeling sick. Such a choice would sometimes have terrible consequences, like when people begin seeking treatment for their ailment or injury only when it has already worsened.

For as little as ₱100 a month, you can already maintain a PhilHealth membership and be insured for a number of in-patient and out-patient medical services. Furthermore, various HMOs in the country also provide packages designed for either company-employed or self-employed individuals.

“I think that health insurance coverage should be a priority for couples. If any [one] of them or both are working, it's just as simple as updating their records to list each other and their kids as dependents,” says Villafuerte.

Coupled with a personal emergency fund, health insurance coverage for yourself, your spouse, and your kids can help all of you enjoy a better quality of life.